Xbox CEO drops AI chatbot Copilot for consoles

▼ Summary
– Microsoft is halting development of its AI chatbot Copilot for Xbox consoles and will wind down Copilot on mobile, as part of a business shift under CEO Asha Sharma.
– The decision aims to “retire features that don’t align with where we’re headed,” according to Sharma, who emphasized the need to move faster and deepen community connection.
– Gaming Copilot, which was in beta for the Xbox app and Windows devices, had been planned for console release later this year before the halt.
– Internal leadership changes include moving four CoreAI team members to Xbox and promoting existing leaders to push the business forward.
– This move is one of several changes under Sharma, including a rebrand, reevaluating exclusivity, and adjusting Game Pass pricing.
Microsoft has officially pulled the plug on its AI chatbot Copilot for Xbox consoles, a decision confirmed by newly appointed Xbox CEO Asha Sharma. The move signals a strategic pivot for the gaming division under Sharma’s leadership, with a clear directive to retire features that no longer serve the company’s evolving vision.
The announcement arrived amid a turbulent day for the Xbox brand. Earlier, IGN reported that four members of Microsoft’s CoreAI team had been reassigned to Xbox. Hours later, Sharma took to her X account to reveal that the Gaming Copilot integration for consoles would be scrapped entirely.
“Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers,” Sharma wrote. “Today, we promoted leaders who helped build Xbox, while also bringing in new voices to help push us forward. This balance is important as we get the business back on track. As part of this shift, you’ll see us begin to retire features that don’t align with where we’re headed. We will begin winding down Copilot on mobile and will stop development of Copilot on console.”
First introduced in beta last year, Gaming Copilot was envisioned as an AI-powered gaming sidekick , a virtual guide capable of offering boss-fight tips, personalized game recommendations, and real-time assistance. While it was available in beta on the Xbox mobile app, Windows 11, and devices like the ROG Ally, it had never reached Xbox consoles.
The decision marks a sharp reversal from Microsoft’s stance as recently as March. At the Game Developers Conference, product manager Sonali Yandav told attendees, “I’m excited to announce that later this year, we will bring Gaming Copilot to the current-generation consoles, and we will continue to bring it to more services that players are playing,” according to GamesRadar.
The retreat from AI chatbot development is just one of several major shifts under Sharma, who took the reins after Phil Spencer stepped down in February. Since then, she has overseen a rebrand, launched Project Helix, signaled a reevaluation of exclusivity policies, and addressed internal concerns over Game Pass pricing by slashing the cost of Game Pass Ultimate just weeks after a price hike.
(Source: Polygon)




